Afghan Womens Economic Participation Report

Executive Summary
Equal i t y i n t he workpl ace hel ps l i f t peopl e out
of povert y and cont ri but es t o hi gher GDP
l evel s, but around t he worl d women cont i nue
t o represent an unt apped economi c pot ent i al .
Gl obal l y, t he gender gap i n t he workpl ace i s on
t he decl i ne, wi t h women-owned busi nesses an
i ncreasi ngl y i mport ant dri ver of change i n t he pri vat e sect or f or broader
economi c devel opment .
Now more than ever before, an unprecedented number of Afghan women are participating
in the formal private sector economy as entrepreneurs, business owners, and employees.
However, there is very little data available on these women and their activities. A primary
objective of this report is to document and better understand their experiences and needs
as they see them.
This report serves as a baseline for beginning to fill this knowledge gap by directly
recording the views and experiences of businesswomen and female employees in
Afghanistan. These women agreed to answer questions about who they are, what kinds of
work they do, and how they see themselves as working women, including the difficulties
they face and the challenges and obstacles they must overcome to do their jobs and run
their businesses. Importantly, they also talked about their needs, aspirations, and outlook
for the immediate future.
The data presented in this report is based on three surveys undertaken with 298 women
business owners, 524 women employees, and 602 key informants from a cross-section of
institutions and businesses throughout the whole of Afghanistan, for a total of 1,424
participants. This data should be considered as a starting point for more effectively
leveraging the economic contributions of Afghan women now, in the near future, and
beyond.
The timing of this report is critical. In 2014, Afghan people will make the difficult transition to
determining their own future. As this study demonstrates, it is clear that Afghan women
have a key role to play in the economic recovery and development of their country. They
are one of Afghanistans most valuable resources. The women surveyed for this report
provide insight into how they can be supported for success at the family level, in the
workplace, by the Afghan government, and by the international community. It is time to
listen to and act on what they say they need.
Key Findings
Views on women at work appear to be steadily evolving, with more segments of the
population becoming amenable to and supportive of womens economic participation.
Notably, attitudes about what types of work are considered appropriate for women also
seem to be changing.
A General Profile of Women at Work
Growi ng t rends:

o The majority of survey respondents entered the workforce during the last
decade, with half of these going to work in the last five years
o A high percentage of economically active women belong to a younger
generation
o For most of these women, marriage does not appear to be a barrier to
working
o Many women know other women who are not currently working but would
like to join the workforce
o Working in non-traditional sectors has growing appeal for women business
owners and employees alike

A massive 96% of these women have the support of their families, who believe
women should contribute to rebuilding Afghanistan. Supportive families also help
create positive role models for other women.

Key success factors include: family support, access to higher education, and
exposure to regional and international experiences are decisive. Being prepared to
enter the job market with adequate skills and education, working in adapted
workplaces, accessing opportunities in small businesses, and on-the-job training
are also important.

These women are confident. Businesswomen are generally positive about the
success and growth potentials of their companies. A majority of women employees
think there are enough capable Afghan women to meet employers needs.

Perspectives about the near future are evenly divided between cautious optimism
and uncertainty based on a range of concerns. Completely negative outlooks are a
clear minority opinion, although one in four businesswomen thinks her business will
be strongly affected by the transition in 2014 and beyond.

The top sectors in which women have elected to start businesses and the top
sectors that employ women demonstrate the potential of local procurement to jump
start and stimulate economic development in fragile and post-conflict states. This
reinforces the value of having quotas and set-asides for better enabling womens
economic participation.

Afghan Businesswomen: A Statistical Portrait
Over 5,500 workers employed by Afghan businesswomen
78% of women-owned businesses are small businesses (1 to 10 employees)
81% were unable to access any credit or financing
Above-average earnings: 38% report a monthly income between AFN 30,000 and
more than AFN 50,000 (from $545 to more than $908), with just over half of these
in the highest income bracket
Around 80% of Afghan businesswomen have attended an institution of higher
education
Working in a wide variety of sectors, many of which are non-traditional, and in
multiple sectors: at 24%, construction and construction materials is the most
represented
47% do business with the international community in Afghanistan and 40% with the
domestic market, but only 13% find business opportunities with the Afghan
government
Almost 90% do not have partnerships with other businesses or institutions and
nearly 75% do not belong to a business association
Most needed help: marketing support, access to buyers, financial management,
and technical support
Top challenges: corruption, lack of capital, and insecurity

Whether these women-owned businesses are robust and resilient is unclear. The
predominance of small businesses in this survey sample indicates a degree of fragility,
especially in the context of a shrinking international presence. Potentials for domestic and
regional market share expansion need to be better understood in relation to how to scale
existing businesses, as well as how to re-tool and adapt them to a changing marketplace in
Afghanistan and the emerging opportunities therein. Domestic expansion and large-scale
economic impacts can be considerably enhanced by transfer of procurement authority
from the international community to the Afghan government. Despite upcoming challenges,
their diverse customer base combined with the confidence and optimism these women
expressed about their businesses bodes well for their future survivalprovided they get the
support they say they need.
Women Employees and Workplace Conditions
88% think competition for jobs is fair and open
58% say there are training and upward mobility opportunities
Over 50% say women are promoted based on professional merit
Around 30% say women advance by producing results
63% report there are no women in management positions above them
46% hold on-the-job learning in high regard
82% receive work incentives, with transportation and lunch the most commonly-
cited
Most needed help: more business education, financial management, mentoring,
and technical support
Skills to be developed: project management, accounting, and computer and
technical skills
Job sectors in demand: education, administration, finance, business, and health
Top challenges: security, distance to work, and low earnings

The survey results of women employees appear to indicate a changing employment
landscape. They valued their contributions to the economy and expressed confidence in
the capacities of women to meet employer needs. At the same time, these women
identified a need for more training and skills development, both to better equip them for
jobs and to enable their advancement. Changes to the workplace are also reflected in their
views that there now seem to be formal channels for upward mobility based on merit and
job performance. Perhaps the most convincing change is where women work and where
they think up-and-coming younger women want to workin a broad range of non-
traditional sectors.
Key Informants: Broadening the Horizon
Almost all of the respondents supported the idea of women working based on the
importance of womens contribution to increasing economic growth and their right
to livelihoods and economic empowerment, as well as their abilities and talents to
participate in working life
95% of key informants think government and private businesses should support
womens participation in the workplace
Success factors: increasing capacities and skills development; encouragement and
support, especially at family level; and safe and appropriate workplaces
Key barriers: lack of education, customs and traditional culture, and insecurity
What women need from the Afghan government: financial and business support
(access to credit, loans, and access to markets) and better security in general
What women need from the international community: financial assistance, more
programming for women, and access to markets
Aggregate results mask significant regional variations, which offer a more in-depth
perspective on local needs and conditions

Overall, key respondents seem to share the optimism of businesswomen and women
employees related to the potentials of womens contributions to developing the Afghan
economy. In key areas, their views overlapped with those of working women. In others, the
key informants appeared to reflect standard perspectives on barriers to womens economic
participation as they are defined by the general demographic profile of Afghan women;
namely, lack of education and social customs.
Building Markets remains optimistic about the potential for women to positively contribute
to making the Afghanistan economy stronger, more diverse, and more resilient. Supporting
women employees and entrepreneurs will be key in ensuring both a sustainable economy
and an equitable place for women in Afghanistan.

Recommendations

1. Provide broad support to women
business owners and women
employees in waged work in the
formal economy.
2. Create stronger linkages between
skills and markets to enable women
to become better entrepreneurs,
business owners, and managers.
3. Develop and strengthen womens
business networks, with particular
focus on mentoring and matching
women business owners and
entrepreneurs with other women in
their organizations or sectors.
4. Promote high levels of support for
working women.